questions to ask yourself before crowdfunding 5

alexis HOUSSOU @a_houssou

#1. why?

crowdfunding preorders

preorders vc funding

validate product market fit validate pricing

build a community

finance 1st batch

preorders

preorders product launch

#2. are you ready to

launch?

3 first days

= 28% total funding

average among $500k + funded projects.

pre-campaign formula

OK

ready to launch means…

=  

email sign-ups

conversion rate

pre-campaign formula:

funding goal ≥  ×  

×  average pledge

target = $500,000

1st 3 days = $150,000

day 1 = goal = $50,000 10% conversion rate

$100 average pledge 500 backers on day 1

5,000 email sign-ups

ex:

5,000 emails

10% conversion

ex:

$50,000 goal ≥  

×  

×  $100 pledge

#3. manufacturable

prototype?

average shipping delay

= 7 months

breakdown of $500k+ funded & shipped projects per shipping delay.

4%

44%

31% 20%

on time 1-5 months

6-10 months

11-20 months

average expected time between kickstarter and shipping

4 months.

average actual time between kickstarter and shipping

10+ months.

manufacturable ≠ working prototype

manufacturable =

factory validated =

precise bill of materials (=)

(you know your costs)

#4. which

platform?

kickstarter indiegogo

✚  

-

7M+ organic community

best media coverage

Kickstarter brand stamp

US-based company needed

hard to get data

flexibility

easy to get data

no US-based company needed

less audience

less prestige

many #BS# projects

vs

tips to decide:

is indiegogo’s flexible plan for you ?

can you easily set up a company in the US?

what is the real goal of your crowdfunding campaign?

kickstarter selfstarter

7M+ organic community

easy media coverage

Kickstarter brand stamp

traffic => kickstarter page

KS community ≠ your community

Post-kickstarter “valley of death”

cut middlemen fees

traffic => own website

optimize paid visits

hard without seed funding

strong PR resources needed

no leverage on existing

community

vs

-

✚

tips to decide:

are your target customers on kickstarter?

can you raise funding before launching a campaign?

what product development stage are you at?

#5. what if

you fail?

december 2013 august 2014

brought to you by

follow @elephantsandv follow @hardware_club

x